Determinant of adoption of agricultural machine renting in West Gojjam zone, Ethiopia

Abstract

Agricultural mechanization is one of the key components that enhance agricultural intensification. Thus, this study investigates determinants of agricultural machine renting of smallholder farmers using cross-sectional data obtained from 192 agricultural machine users and 208 non-users of agricultural machine smallholder farmers from West Gojjam zone, Ethiopia. Three districts were selected because of the presence of agricultural mechanization intervention The data were collected from 400 households selected randomly and proportionally from Wonberma, Burie Zuria, and Dembecha districts from January to April 2021 year. To describe and analyze the data descriptive statistics and econometric model were used. The descriptive statistics show among agricultural machine renting households about 25.3% households were rented tractor, 22.3% combine harvester 28.54% maize Sheller and other farmers use two or all three types of machines simultaneously. The result of multivariate probit model showed that correlation coefficient between tractor and combine harvester, tractor, and maize Sheller, and combine harvester and maize Sheller were 63.1, 48.2, and 68.6%, respectively. The positive sign indicates the adoption of one type of machine enhancing the marginal productivity of other types of machines. Adoption of agricultural machine renting were influenced by age of households, level of education, ownership of oxen, total cultivated land, extension visit, and information access from extension agent positively and significantly. On the other hand, family size, distance to development agent and distance to the nearest market were negatively and significantly affect agricultural machine renting. Based on the finding, this paper recommends that the governmental and non-governmental organization should focus on the strengthening of formal and informal education, development of infrastructures, and extension visit which promote agricultural machine renting services.